Berger Paints India (BERGEPAINT) Q4 97/98 earnings summary

Executive summary

• FY98 sales rose 12% and volume 14% YoY; PBT increased 11% and PAT 28%, despite industrial slowdown and weak housing demand.

• Pondicherry operations supported improved service in the South and delivered tax concessions; management expected further improvement in FY99, barring unforeseen circumstances.

Financial highlights

• Sales were Rs 348.60 crore, up 12% YoY; volume growth was 14%.

• PBT was Rs 24.41 crore versus Rs 22.06 crore; PAT was Rs 18.24 crore versus Rs 14.29 crore, up 28% YoY.

• Annualised EPS on increased paid-up capital was Rs 15.96.

• Depreciation was Rs 3.33 crore versus Rs 1.66 crore; tax provision fell to Rs 6.17 crore from Rs 7.77 crore.

Outlook and guidance

• Year-to-date performance was encouraging; directors expected the current year to improve on FY98, subject to unforeseen circumstances.

• Pondicherry's contribution was expected to increase in the years ahead.